Top ETFs of the week: Gold Miners & Marijuana ETFs

This week, Gold Miners and Marijuana ETFs make it to the top ETF list in Europe and North America. Below we explain why these ETFs made it to the top for the week of November 8 to 12th, 2021.

Gold lives up to its status as inflation hedge

Gold recently lived up to its inflation hedge title as concerning Chinese and U.S inflation data sent investors flocking back to the yellow safe haven, pushing the spot price up to $1870/oz. levels.

The gold rush came after the U.S. Labor Department released inflation data last Wednesday that showed U.S. Consumer prices jumping 6.2% in October, the biggest inflation surge since December 1990. On a monthly basis, the CPI increased by 0.9% against the 0.6% estimate.

China's factory-gate data were also released earlier last week. The data showed that prices grew at the fastest pace in 26 years in October as coal prices soared amid a power crunch in the country's industrial zones. The annual inflation rate rose sharply to 1.5% in October 2021 from 0.7% a month earlier, higher than the market consensus of 1.4% and highest since September 2020.

The worrisome data coming out of the two global powerhouses gave Gold mining ETFs a push with Sprott Junior Gold Miners ETF (SGDJ), UBS (Irl) ETF plc – Solactive Global Pure Gold Miners UCITS ETF (UBUD) and L&G Gold Mining UCITS ETF (AUCO) gaining +10.11%, +8.81% and +7.84% respectively.

Brewing catalysts boost interest in Marijuana ETFs

Appetite for Marijuana ETFs surged with over $350 million in net inflows in November so far. The highly volatile underlying holdings likely rose on the talk of the pending introduction of the States Reform Act by Republican Representative Nancy Mace. This bill that would legalize cannabis federally with less FDA involvement and lower taxes compared to the Democratic legislation, the Cannabis Administration and Opportunity Act.

Cannabis shares also rose from the passage of the Congressional Infrastructure bill, which includes a proposal allowing cannabis scientists to buy research cannabis from local dispensaries instead of government-produced facilities.

Other factors contributing to the uptrend, is the better-than-expected results or positive outlook of key marijuana players such as Cresco Labs, MedMen, Agrify and Trees (formerly General Cannabis) among other.

To a lesser extent, M&A talks in the industry has intensified with rumors on multiple targets, giving marijuana stocks an additional boost. The most recent blockbuster deal is Trulieve Cannabis Corp's acquisition of Harvest Health & Recreation Inc. in early October. The $2.0 billion+ deal created the largest U.S. cannabis operator across a combined retail and cultivation footprint basis with depth in key markets, according to Truelieve press release.

Trackinsight data reveal that 8 of the top 10 performing ETFs in Americas last week were Marijuana/Cannabis ETFs, led by Horizons US Marijuana Index ETF (HMUS), Purpose Marijuana Opportunities Fund ETF (MJJ), Horizons Marijuana Life Sciences Index ETF (HMMJ) with over 12% gains each.

Top 10 ETFs of the week

Europe

• KraneShares CSI China Internet UCITS ETF (KWBP): +9.08%
• UBS (Irl) ETF plc – Solactive Global Pure Gold Miners UCITS ETF (UBUD): +8.81%
• L&G Gold Mining UCITS ETF (AUCO): +7.84%
• WisdomTree Coffee (ECOF): +7.63%
• VanEck Vectors Junior Gold Miners UCITS ETF (G2XJ): +7.57%
• iShares Gold Producers UCITS ETF (XLON:SPGP): +6.89%
• VanEck Vectors Video Gaming and eSports UCITS ETF (XLON:ESPO): +6.75%
• FinEx Video Gaming and eSports UCITS ETF: +6.74%
• VanEck Vectors Gold Miners UCITS ETF: +6.43%
• WisdomTree Wheat (OOX): +6.42%

Americas

• Horizons US Marijuana Index ETF (HMUS): +14.20%
• Purpose Marijuana Opportunities Fund ETF (MJJ): +13.57%
• Horizons Marijuana Life Sciences Index ETF (HMMJ): +12.68%
• AdvisorShares Pure US Cannabis ETF (MSOS): +12.46%
• AdvisorShares Pure Cannabis ETF (YOLO): +11.96%
• Cannabis Growth ETF: +11.10%
• ETFMG U.S. Alternative Harvest ETF: +10.89%
• ETFMG Alternative Harvest ETF: +10.78%
• Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ): +10.39%
• Sprott Junior Gold Miners ETF (SGDJ): +10.11%

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